Archive - June, 2014

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During a press conference held by the BoE yesterday, Governor Mark Carney issued details of their planned Financial Stability Report announcing the implementation of a series of prudent macro tools intended to help slow down the ever inflating recent UK house price bubble and to prevent an unsustainable build-up of consumer debt. Full details of the Report can be found here: http://www.bankofengland.co.uk/publications/Documents/fsr/2014/fsrfull1406.pdf Over the past four ye…

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The Bank of England released the minutes of the Monetary Policy Committee meeting that was held on the 4th and 5th of June 2014. The key line from the BoE minutes is that the MPC members were surprised at the limited expectation from the market, that the MPC would raise rates before the end of the year. relatively low probability of 2014 bank rate rise priced in by markets "somewhat surprising Bank of England voted 9 – 0 to leave interest rates unchanged at 0.5…

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We have seen significant moves in cable over the last couple of days; the pound climbed over 200 points against the US dollar following Governor Mark Carney’s address at the annual Mansion House speech on Thursday evening. Carney gave his biggest hint yet that interest rates could rise before the turn of the year, saying ‘there’s already great speculation about the exact timing of the first rate hike in the UK and this decision is becoming more balanced. It could happ…

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Guest Blog, Abshire-Smith Iraq Country Manager 12/06/2014 14:30 (London) Iraqi forces sought to check the rapid advance of Islamist militants who had seized major cities, including Iraq’s second largest city, and Saddam’s hometown of the Tikrit. What has concerned energy markets is the control of one of Iraq’s largest refinery Beiji which produces 310,000 BPD. However State media has just reported that Iraq’s Oil Minister Abdul Kareem Luaibi said that the…

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The Office for National Statistics (ONS) released their Labour Market statistics for the UK at 9:30am on Wednesday morning. The headline 3-month unemployment rate for February - April 2014 beat expectations, being released at 6.6%, below expectations of 6.7% and the previous release of 6.8%. The UK government will be very pleased with these figures, reinforcing their plan to bring the UK economy back on track, however the opposition is likely to focus on the wage growth. Average earnings gro…

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Today is Non-Farm Payrolls Friday, the monthly release of the US employment figures that are closely watched by traders. The US Bureau of Labor Statistics releases the report at 13:30, with the headline number of jobs added during May and the unemployment rate. The Fed’s focus on the threshold unemployment rate of 6.5% seems to be waning, with the wage growth and capacity the concentration. Following the release there is usually considerable volatility as traders attempt to react…

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The latest rate decision from the European Central Bank will be announced today at 12:45 GMT. This is the most eagerly awaited rate decision, certainly for quite a few months, possibly ever, especially after President Mario Draghi hinted in their meeting last month that they would act today. Many economists are expecting an unveiling of a package of measures but there are some discrepancies over the exact ones to be used. Since the May meeting, pressure has only increased on President…

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UK Services Purchasing Managers Index (PMI) was released at 9:30 on Wednesday, slightly above expectations at 58.6, versus April’s 58.7. This is another strong print for the UK economy and reinforces the strength in the economic recovery. The services PMI accompanies strong survey reports from the manufacturing and construction sectors, pointing towards a relatively balanced recovery. A highlight of the statistical release was the service sector employment growth strengthened to…

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The World Cup starts on the 12th June running until the 13th July, being hosted by Brazil, South America. The global scale of the sport means that there are significant amounts of money invested into advertising, hospitality, sponsorship and infrastructure. Is there a correlation between the fortunes of a football team in the tournament and a nation's currency? Well in short, no, there isn’t a direct link over the long term, but the tournament does have an impact on the marke…

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The UK Building Society, Nationwide released their monthly House Price Index in May, showing that prices continued to edge higher. In May prices grew by 0.7% and were up by 11.3% compared with May 2013. The average home in the UK now costs £186,512. House prices and Sterling House prices have become a contentious factor and the potential caveat for increasing base interest rates from the record low of 0.50%. The growth in property prices has fuelled concerns from analysts a…

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May 2014 Abshire-Smith;the FCA regulated broker, located in the City of London, England announced that it has recently entered into a new partnership with Optimal Payments; the world’s largest independent money transfer businesses and the developer of Neteller online payment service. The new partnership will provide Abshire-Smith Clients with a fast, simple and secure wayto fund their trading accounts through NETELLER. Starting a new account with Neteller is easy and free a…

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